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Rank the three support departments by their original costs, and then allocate the support department costs using the step method. (Round intermediate calculations to 4 decimal places, e.g. 15.2516 and final answers to 2 decimal places, e.g. 15.25.) As the managing partner of Bramble Accounting Services (HAS), Adam is trying to compare the profitability results of the firm's three different business lines: Audit, Tax, and Advisory Services. These three operating divisions are supported by three support departments: Billing, Human Resources, and IT. The cost drivers (or allocation bases) for each of the support departments, along with each department's usage of those services and its own original costs, are as follows. The total revenue earned by each operating division is Audit, $847,000; Tax, $1,140,000; and Advisory, $584,000. Evaluate the profitability of each operating division, first using the costs from part (a) and then using the costs from part (b). Compare the gross margin percentages for each of these divisions to their profit margin percentages. (Round percentage answers to 1 decimal place, e.g. 15.2% and dollar answers to 2 decimal places, e.g. 15.25.) Rank the three support departments based on the percentage of their service provided to other support departments, and then allocate their costs using the step method. (Round intermediate calculations to 4 decimal places, e.g. 15.2516 and final answers to 2 decimal places, e.g. 15.25.) The total revenue earned by each operating division is Audit, $847,000; Tax, $1,140,000; and Advisory, $584,000. Evaluate the profitability of each operating division, first using the costs from part (a) and then using the costs from part (b). Compare the gross margin percentages for each of these divisions to their profit margin percentages. (Round percentage answers to 1 decimal place, e.g. 15.2\% and dollar answers to 2 decimal places, e.g. 15.25.)

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